Is Deccan Transcon overvalued or undervalued?

As of 3 October 2025, the valuation grade for Deccan Transcon has moved from very expensive to very attractive, indicating a significant shift in its market perception. The company is currently deemed undervalued, with a PE ratio of 12.06, an EV to EBITDA of 7.13, and a ROCE of 28.17%. These metrics suggest that Deccan Transcon is trading at a discount compared to its peers, particularly when compared to Container Corporation, which has a PE ratio of 30.72, and Aegis Logistics, with a PE ratio of 46.6. In the context of its industry, Deccan Transcon's valuation appears compelling, especially given its strong ROE of 19.18% and a PEG ratio of 0.00, which indicates no growth premium is being paid. While the stock has underperformed against the Sensex over various periods, including a YTD decline of 45.56% compared to a 5.28% gain for the index, the current valuation metrics suggest that the stock presents a solid buying opportunity for investors looking for value in the transport services sector.